Sharon McDougall - Updated - 6th November 2023 - 3 minutes to read
MAP allows a path into sequestration, the term used in Scotland for bankruptcy, for people on low incomes and with few assets who may not otherwise be eligible for a formal debt relief solution.
As long as the specified criteria are met, you can apply for your own bankruptcy via the Minimal Asset Process and potentially be free of unsecured debts within six months.
In order to be eligible for the MAP route into bankruptcy, the following criteria apply:
The Common Financial Tool is used by money advisors in Scotland to decide on eligibility, and to ensure that the correct insolvency product is offered.
Once the guidance of a professional money advisor or organisation has been sought, they will need to review all debts, income and assets. Following this review, they will be able to let you know whether the Minimal Asset Process is the best way forward. Once eligibility has been established, a fee of £90 will be payable and is dispatched with the application.
All money advisors are required to provide their name and address, and declare that formal advice has been given. Guidance should cover the debtor’s financial situation, and the options available to them. Additionally, advisors will be expected to inform the applicant of the repercussions of formal insolvency, and provide assistance in completing the Minimal Asset Process application form.
When MAP bankruptcy has been approved, creditors will be unable to take any further legal action.
There are certain debts that cannot be included in MAP sequestration. These include:
– Student loans
– Court fines
– Arrears of Child Maintenance payments
Minimal Asset Process bankruptcy generally ends after a period of six months, although you will continue to be subject to restrictions on taking out borrowing for a further six months.
The Minimal Asset Process is noted on your credit file for six years, and will adversely affect your ability to obtain credit during this time. Additionally, your name will appear on the public insolvency register.
Apart from having an effect on your credit file, MAP bankruptcy may impact on other areas of life:
The timescale of MAP has been set at six months, and has halved when compared with LILA. This allows people in Scotland with few assets and low income to escape the debt trap quickly.
Debtors don’t have to wait to be forced into bankruptcy by a creditor, which was the situation prior to 2009 when LILA was introduced. People then were stuck in the situation of being unable to pay off their debts, but also not able to declare themselves bankrupt.
The low application fee of £90 also makes it more affordable for debtors with the lowest incomes, and the requirement for professional financial advice ensures that only those with the most need are able to make a Minimal Asset Process application.
We are professional insolvency advisors and can help you decide whether MAP is the best option for you.
While ‘buy now, pay later’ services like Klarna can feel like a shopper’s best friend, they can also be a fast track to debt.
If you’re a homeowner in Scotland, and are experiencing high levels of debt, your property may be affected when you enter a formal debt relief procedure.
When lenders decide whether or not to offer you a loan, it is the information held on your credit file that forms the basis of their decision. This information also helps to combat fraud, as your iden...
Why Choose Us
Speak Direct With
A Qualified Adviser
We Don't Operate
5 Offices in Scotland
Ask us About
Fully Regulated Advisors
From a Reputable Firm
Helping Scots Get
Out of Debt Since 1989
We'll give you a call
Our Scottish based team can help advise you on your debt problems.
Our personalised debt report will help you better understand your financial position and see where your money is going.
Arrange a call with an expert advisor at a time to suit you or contact our team via WhatsApp for immediate help and advice.
We can help you with...
Sequestration is the Scottish version of bankruptcy and may be suitable for you if you do not have the money to pay back your debtsFind out More
A Trust Deed involves making a monthly contribution to your debts for up to four years. After this time any remaining debt included in the Trust Deed will not need to be paid.Find out More
A Debt Arrangement Scheme (DAS) lets you pay off your debt through a series of manageable instalments over a reasonable length of time.Find out More
Our Insolvency Practitioners are regulated by ICAS or the IPA and our firm is authorised and regulated by the Financial Conduct Authority
Fees and Information: There are fees associated with our services. These will be fully explained before entering into any of the personal debt solutions referred to on this website. Full details of our fees and how these are charged are fully explained to you prior to you committing to any particular service.